Shares Of World's 4th Largest Automaker Stellantis To Begin Trading This Coming Week

Shares Of World's 4th Largest Automaker Stellantis To Begin Trading This Coming Week

Image of Stellantis CEO Carlos Tavares courtesy of PSA Group.

The world's fourth largest automaker officially came into existence on Jan. 16, 2021.

What Happened

The $52 billion merger between Peugeot S.A. (PUGOY) and Fiat Chrysler Automobiles NV (FCAU), which took a year to finalize because of the COVID-19 disruption, was formally completed this morning.

The new company is called Stellantis NV, and shares will begin trading on Monday on the Euronext exchange in Paris and the Mercato Telematico Azionario in Milan, followed by the New York Stock Exchange on Tuesday. Its ticker symbol on all three exchanges will be "STLA."

Why It Matters

The new company will have annual sales of about 8.1 million vehicles, according to Reuters. Stellantis' now-larger size will help it take on larger competitors Volkswagen AG (VWAGY) and Toyota Motor Corp. (TM).

It will be led by CEO Carlos Tavares, described by Bloomberg as "an ultra-competitive amateur rally driver who calls himself a 'performance psychopath' [with] a Darwinian view on the industry, arguing that only the strong carmakers will survive the pivot to electric drives and pursuit of autonomous driving."

The new company has strengths in North America through the Ram and Jeep brands, and in Europe through the Peugeot and Citroen brands. But it has not done well in the world's biggest auto market — China. And like all traditional automakers, it faces technological upheavals of the industry in the forms of electrification and autonomous driving.

Investors are waiting to hear more details on the company's plans. Tavares and Stellantis Chairman John Elkann are scheduled to hold a virtual press conference on Tuesday, Jan. 19 at 9:40 a.m., right after they ring the bell at the NYSE.

© 2021 Benzinga does not provide investment advice. All rights reserved.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.